Fitch Ratings Upgrades NationsLink Funding Corp. Series 1996-1.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 6, 2003 NationsLink Funding Corp.'s commercial mortgage pass-through certificates Pass-Through Certificates (PTCs) are instruments that evidence the ownership of two or more Equipment Trust Certificates. In other words, Equipment Trust Certificates may be bundled into a pass-through structure as a means of diversifying the asset pool and/or increasing the size , series 1996-1, are upgraded by Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. as follows: -- $17.7 million class D to 'AAA' from 'AA'; -- $14.5 million class E to 'AAA' from 'BBB+'; -- $10.5 million class F to 'AAA' from 'BBB-'; -- $5.6 million class G to 'AA' from 'BB+'; -- $9.7 million class H to 'BB+' from 'B+'. The following classes are affirmed: -- $17.2 million class C 'AAA'; -- Interest only class X 'AAA'. The $9.3 million class UR is not rated by Fitch. The rating actions follow Fitch's annual review of this transaction, which closed in May 1996. The rating upgrades reflect the continued strong pool performance and the increased credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing as a result of additional collateral paydown. GMAC GMAC General Motors Acceptance Corporation GMAC Graduate Management Admission Council GMAC Give Me A Call GMAC Genetic Manipulation Advisory Committee GMAC Genetic Modification Advisory Committee (Singapore) GMAC Give Me A Chance Commercial Mortgage Corp., the master servicer, collected year-end (YE) 2002 operating statements operating statement See income statement. for 72% of the loans. The year-end 2002 weighted-average debt service coverage ratio The debt service coverage ratio (DSCR), or debt service ratio, is the ratio of net operating income to debt payments on a piece of investment real estate. It is a popular benchmark used in the measurement of an income-producing property’s ability to produce (DSCR DSCR See: Debt-service coverage ratio ) was 1.77 times (x), compared to 1.53x at issuance. Three loans (6%) reported YE 2002 DSCRs below 1.0x. As of the July 2003 distribution date, the transaction's aggregate principal balance has decreased 74%, to $84.5 million from $322.6 million at issuance. The certificates are currently collateralized by 26 loans, compared to 94 loans at issuance. By outstanding balance, significant property type concentrations include multifamily (45%), retail (28%), health care (14%), industrial (7%) and office (4%) properties. The properties are located in seventeen states, with concentrations in Ohio (27%), Tennessee (11%), Florida (8%) and Texas (8%). There are currently four loans (14%) in special servicing including three (9%) 90 days delinquent loans. Losses are expected on one of the delinquent loans (3%). Fitch reviewed the master servicer's watchlist and found 10% to be of concern. Fitch stressed these loans along with the analysis of the remaining pool. The resulting credit enhancements were sufficient to upgrade and affirm the ratings. |
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion